SENATE BILL REPORT

SSB 5648

BYSenate Committee on Economic Development & Labor (originally sponsored by Senators Smitherman, Lee, Murray and Vognild)

Authorizing creation of a federation of Washington ports.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 8, 1989; February 24, 1989

Majority Report:  That Substitute Senate Bill No. 5648 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, McMullen, Matson, Murray, Smitherman, Warnke.

Senate Staff:Steve Boruchowitz (786-7429)

                  April 17, 1989

House Committe on Trade & Economic Development

Rereferred House Committee on Appropriations

AS PASSED SENATE, MARCH 9, 1989

BACKGROUND:

The Washington Public Ports Association is currently empowered to:  coordinate programs among the ports; study ways of improving commerce; and promote development of transportation and industry throughout the state.  Its coordination authority and responsibilities are found in several sections of statute.  In addition, individual port districts may operate trade centers for the promotion of import and export trade.

The Economic Development Board was established to develop long-range economic development goals.  It has recommended that the ports form a cooperative marketing association to further enhance their ability to carry out their responsibilities.

SUMMARY:

The Washington Public Ports Association is authorized to establish a federation of Washington ports to strengthen international trading capacities.  The federation operates as an international trading company while maintaining the authority of individual ports.  Class AA or A county port districts are allowed to participate in an export trading company established by the federation.

Beginning with the 1990 legislative session, the association shall report to the Legislature on progress toward establishing and operating the federation.

Both the association and federation are given specific authority to operate trade centers.  Associate development organizations are added to the list of groups with which the association and its member districts are directed to work.  A definition of the federation is added.  The sunset review and termination of the Export Trading Company Act is changed from 1991 to 1994.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Don White, Washington Public Ports Association; Mike Fitzgerald, Economic Development Board (pro); Tim Sheldon, Economic Development Council of Mason County (pro)

HOUSE AMENDMENT:

A 20-member temporary task force on cooperation among ports and local economic development organizations is added.  The task force's areas of study include:  joint marketing, joint trade offices, and other efforts between ports and local organizations; building local capacity; and the state's air cargo capacity.  The task force may not consider nor make any recommendations in the areas of rates or rate setting (or price fixing) by ports or associate development organizations.

The prohibition of ports in A and AA class counties from being able to form an export trading company is restored.